Bank of England Deputy Governor for Financial Stability Sarah Breeden told attendees at the SALT conference that the central bank is preparing a consultation paper on regulating sterling-denominated systemic stablecoins.
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The paper, first flagged in a BoE announcement on 10 November, sets out how these digital tokens — designed to maintain a stable value and potentially used for both retail payments and wholesale settlement — should be overseen as they move closer to mainstream financial use.
Breeden said the BoE envisions a “multi-moneyverse,” where traditional money and digital forms coexist. To ensure a smooth transition, she noted that the Bank proposes temporary limits on how much stablecoin users can hold, reflecting concerns that rapid adoption could disrupt credit provision or introduce new financial-stability risks.
Under the BoE’s proposals, individuals would be capped at £20,000 per stablecoin, while businesses would face a £10 million limit, with exemptions available for the largest firms. These caps would be lifted once the Bank judges the system stable enough to allow wider usage. “For stablecoins, we will be your banker,” Breeden added, explaining that users would hold their balances directly with the central bank during the interim period.
This article was written by Eamonn Sheridan at investinglive.com.